OL211 Milestone Four - “A compensation philosophy is simply a formal statement documenting the company\'s PDF

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“A compensation philosophy is simply a formal statement documenting the company's position about employee compensation....

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OL 211 Milestone Four Shawna Pratt Southern New Hampshire University

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“A compensation philosophy is simply a formal statement documenting the company's position about employee compensation. It explains the "why" behind employee pay and creates a framework for consistency. Employers use their compensation philosophy to attract, retain and motivate employees.” (SHRM.org) Maersk compensation philosophy is a policy that is made by management and human resource department. They use the Danish Companies Act to write their policies, benefits, and incentives for the company. The compensation includes short term incentives, long term incentives, discretionary benefits, stock options and a yearly bonus based on job performance. As the market value of the job changes so does the compensation philosophy. A salary survey is an asset to any company it helps a company to find and keep employees. Salary surveys help a company stay competitive. The survey can help a company from losing employees because of lower compensation. Discretionary employee benefits include benefits the law does not require the employer to offer. (Martin, 2017} When employees appreciate their benefit package, they think more favorably about their employer and take pride in working for their company. (Martin 2017) Some of the discretionary benefits Maersk is offing is paid time off and childcare. By offering paid time off and childcare Maersk is keeping their employees happy. They understand that to keep employees happy they need time off. When offering paid time off most employee will take advantage of this and be more willing to invest in the company. Offering childcare is an excellent way in retaining your employees. Some employees have a hard time finding childcare and must decide between having a good job and what to do with their children.

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When a company offers childcare then the employees will consider this before they leave for a different job. Discretionary benefits are beneficial in retaining good employees.

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References: https://www.shrm.org/resourcesandtools/tools-andsamples/hrqa/pages/compensationphilosophy.aspx?_ga=2.141736498.1059752893.16175943651585854681.1613503872 Martin, M, September 2017 “The Advantages of Discretionary Employee Benefits”...